e8 0 omework Help Save Required information The following information applies to
ID: 2402256 • Letter: E
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e8 0 omework Help Save Required information The following information applies to the questions displayed below. The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advereising expesse Depreciation expense office equipent Depreciatlon expecso-Selling equipmont Depreolation exesse-Factory equipeent Tactory superviaion Factory supplies used Factory utilities tnventor Lies 29.800 Direct labor 236,300 8,700 Ineone taxes expense 2,900 Miscellaneous prodaction costa 8,50 ay materials parchases 61,000 956,000 30,000 27,700 42.000 Reat expense-office space Rent oxpena-Selling space Rau materials, Decenber 31, 2016 Rav naterials, Decenber 31, 2017 Work in procests Work in process, Decenber 31, 2017 Finiahed goods, Decenber 31, 2016 riniahed goods, Decenber 31, 2017 166,900 Rent expenso-Factory baiiding 184,000 Maintenance expense-Factory equipment 9,700 485 500 393.00 24,000 Sales salaries expense 2. Prepare the company's 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. LEONE COMPANY Income Statement For Yyear Ended December 31, 2017 4,485 500 Cost of goods sold 164.400Explanation / Answer
Answer:
LEON COMPANY
Income Statement
For Year Ended December 31, 2017
Sales
$4,485,000
Cost of goods sold
Cost of goods manufactured (w.n-1)
$2,027,100
Finished goods inventory, December 31, 2016
164,400
Goods available for sale
2,191,500
Less: Finished goods inventory, December 31, 2017
-138,500
Cost of goods sold
2,053,000
Gross profit from sales
2,432,000
Operating expenses
Selling expenses
Depreciation expense—Selling equipment
11,000
Rent expense—Selling space
27,700
Sales salaries expense
393,800
Advertising expense
29,800
Total selling expenses
462,300
General and administrative expenses
Rent expense—Office space
81,800
Office salaries expense
61,000
Depreciation expense—Office equipment
8,700
Total general and administrative expenses
151,500
Total operating expenses
613,800
Income before state and federal taxes
1,818,200
Income taxes expense
236,300
Net income
$1,581,900
Working notes for the answer:
W.N-1
Manufacturing Statement
For Year Ended December 31, 2017
Direct materials
Raw materials inventory, December 31, 2016
$166,900
Raw materials purchases
956,000
Raw materials available for use
1,122,900
Less: Raw materials inventory, December 31, 2017
-184,000
Direct materials used
$938,900
Direct labor
699,000
Factory overhead
Factory supervision
121,700
Factory supplies used
8,500
Factory utilities
42,000
Maintenance expense—Factory equipment
39,700
Rent expense—Factory building
81,800
Depreciation expense—Factory equipment
32,900
Indirect labor
56,900
Miscellaneous production costs
10,200
Total factory overhead costs
393,700
Total manufacturing costs
2,031,600
Add: Goods in process inventory, December 31, 2016
19,500
Total cost of goods in process
2,051,100
Less: Goods in process inventory, December 31, 2017
24,000
Cost of goods manufactured
$2,027,100
2
As image is not that much clear so i have double Zoomed in but it might be possible that some figure might change but calculation part are correct
LEON COMPANY
Income Statement
For Year Ended December 31, 2017
Sales
$4,485,000
Cost of goods sold
Cost of goods manufactured (w.n-1)
$2,027,100
Finished goods inventory, December 31, 2016
164,400
Goods available for sale
2,191,500
Less: Finished goods inventory, December 31, 2017
-138,500
Cost of goods sold
2,053,000
Gross profit from sales
2,432,000
Operating expenses
Selling expenses
Depreciation expense—Selling equipment
11,000
Rent expense—Selling space
27,700
Sales salaries expense
393,800
Advertising expense
29,800
Total selling expenses
462,300
General and administrative expenses
Rent expense—Office space
81,800
Office salaries expense
61,000
Depreciation expense—Office equipment
8,700
Total general and administrative expenses
151,500
Total operating expenses
613,800
Income before state and federal taxes
1,818,200
Income taxes expense
236,300
Net income
$1,581,900
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